IL HB2861

Increases the franchise tax exemption for domestic corporations to the first $100,000 in liability from January 1, 2026 through December 31, 2026 (up from the current $10,000 exemption)

Eliminates franchise tax payments for domestic corporations entirely for any taxes due and payable on or after January 1, 2027

Prohibits refunds or proration of franchise taxes for any portion of a corporation's taxable year extending beyond January 1, 2027

Repeals the franchise tax provision (Section 15.35 of the Business Corporation Act of 1983) on January 1, 2028

Takes effect immediately upon becoming law